Cash back is the most flexible of all credit card rewards. Instead of points that you have to figure out how to redeem — and that you might not be able to redeem for something you want — you get real ringgits that offset your credit card balances.
A cash-back rewards card is like getting a discount on everything you buy with the card. The fun comes when you use the card everywhere and your cash back piles up. While even the best cash-back credit cards may not be as glamorous as travel rewards credit cards, but as with the hare and the tortoise, sometimes slow-and-steady wins the race.
Common cash-back bonus categories
Many cash back cards earn a higher rewards rate for certain purchases. That’s usually based on where you use the card rather than what you buy with it.
Two of the common bonus categories:
Supermarkets. Sometimes card issuers call this category “groceries,” but the rewards are determined by the type of store, not the specific items you purchase. So it applies to groceries, cleaning supplies, prepared food and anything else bought at the supermarket. For larger households, this can be one of the most valuable categories to get accelerated returns.
Petrol Stations. This is often described as just “petrol spend”. This counts everything you buy from what you pump into your car to what’s in the convenience store, too. Most use one card for multiple vehicles in the household to gain more cash back.
Other bonus categories you might see include entertainment, pharmacies, home improvement stores, wholesale stores and mobile wallet purchases.
So which card will get you that RM270 cash back?
First, when you apply now, and spend with your new HSBC Amanah M Power Platinum Credit Card-i, you’ll get up to RM200 cash back.
Then, when you spend a certain amount on your groceries, petrol and even e-wallet top ups, you’ll earn up to 8% cash back.
And finally, if you take advantage of some of the special cash back offers, you’ll get additional cash back to offset your total spending.
You must think this is a con… We assure you, it’s not! Let us explain in detail how.
1. Apply for a new HSBC Amanah MPower Credit Card-i
Depending on the cardholder type, you can earn up to RM200 cash back just by fulfilling the activation and spend requirements. If you’re wondering how to achieve that spend criteria, we have an example further down the article.
| Cardholders | Activate & Spend | Eligbility Criteria | Total Cash Back Earned |
|---|---|---|---|
| New Primary HSBC Credit Cardholders | Get RM50 when you activate & perform first transaction of any amount | Get RM150 when you spend a minimum of RM1,200 within 60 days from the date of welcome letter | RM200 |
| Existing Primary HSBC Credit Cardholders | Get RM50 when you activate & perform first transaction of any amount | Get RM50 when you spend a minimum of RM700 within 60 days from the date of welcome letter | RM100 |
| Supplementary HSBC Credit Cardholders | Get RM50 when you activate & perform first transaction of any amount | N/A | RM50 |
2. Utilise the 8% Cash Back feature of the card
HSBC Amanah MPower credit card offers up to bonus cash back when you spend a minimum of RM2,000 accumulatively on the following categories:
- Up to 8% Bonus Cash Back on eWallet Spend *eWallet Spend meaning any reload/top-up or payment authorisation transactions made using the Credit Card-i on any of the following eWallets: SamsungPay, GrabPay, Touch & Go and FavePay.
- Up to 8% Bonus Cash Back on Groceries Spend *Applicable to Tesco, Giant, AEON BIG and Mydin.
- Up to 8% Bonus Cash Back on Petrol Spend *Applicable to all petrol merchants MCC5541 and MCC 5542 category codes
- All other Eligible Spend will earn 0.2% cash back *Refer to HSBC Cash Back Terms & Conditions for exclusions
So you will receive cash back on your accumulative spend at the end of your billing cycle and according to your spend categories.
There is no capping on Eligible Spend but there is a cap of RM15 per month per category for Bonus Cash Back.
To make it easier to understand:
| Accumulated Spend (for the month) |
Spend Category | Bonus Cash Back |
Eligible Spend Cash Back |
Total Cash Back |
Capping (per month) |
|---|---|---|---|---|---|
| RM2,000 or above | Petrol | 8% | N/A | 8% | RM15 |
| Groceries | 7.8% | 0.2% | 8% | RM15 on Bonus Cash Back only |
|
| e-Wallet | 7.8% | 0.2% | 8% | RM15 on Bonus Cash Back only |
|
| All other Eligible Spend | N/A | 0.2% | 0.2% | N/A | |
| or | |||||
| Below RM2,000 | Petrol | 1% | N/A | 1% | RM15 |
| Groceries | 0.8% | 0.2% | 1% | RM15 on Bonus Cash Back only |
|
| e-Wallet | 0.8% | 0.2% | 1% on Bonus Cash Back only |
RM15 | |
| All other Eligible Spend | N/A | 0.2% | 0.2% | N/A | |
3. Take advantage of HSBC’s Smart Privileges offers
There are numerous benefits, rewards and savings on HSBC Smart Privileges. One of them is a pharmacy deal where you can earn RM25 cash back when you spend RM250 in a single receipt. This is valid for pharmacies like Guardian, Watsons and AA Pharmacy. The best part is, it’s valid for both in-store and online shopping.
So here’s how you can maximize your cash back
Take a look at this table, you’ll clearly see how we got over RM270 of cash back (you could even do this in one month). We’ve made some realistic spending assumptions of a new HSBC customer that is probably using the card for a family of 3 expenses.
| Item Description | Card Spend | Calculation | Total Cash Back |
|---|---|---|---|
| New Customer Activate & Spend | RM50.00 | Activate & perform first transaction of any amount | RM50.00 |
| Shell | RM200.00 | RM200 x 8% (capped at RM15) | RM15.00 |
| Tesco | RM800.00 | [RM800 x 7.8% (capped at RM15)] + RM800 x 0.2% | RM16.60 |
| Guardian | RM250.00 | Special cash back promo RM25 for RM250 in single receipt | RM25.00 |
| New Customer Activate & Spend | – | Spend a minimum of RM1,200 within 60 days from the date of welcome letter | RM150.00 |
| GrabPay (Pay Astro & Celcom) | RM250.00 | [RM250 x 7.8% (capped at RM15)] + RM250 x 0.2% | RM15.50 |
| Takaful Payment | RM350.00 | RM350 x 0.2% | RM0.70 |
| TNB Bill | RM200.00 | RM200 x 0.2% | RM0.40 |
| Total Card Spend | RM2,100 | Total Cash Back Earned | RM273.20 |
Pros and cons of using a cash back card
Cash-back cards are great for many people, but not everybody. Here’s a quick look at their advantages and disadvantages compared with other types of cards.
Pros
Best rewards currency. Cash is king for flexibility. Nobody can change the value of it, and it certainly reduces your balance that you need to pay back. You don’t have to wait a long time to accumulate enough rewards points ( or air miles) to redeem them for a free oven or hotel stay, as you might with other cards.
Simplicity. Cash back cards tend to be far easier to understand and use than other types of cards that leave you wondering whether you’re getting the most value out of them.
No or low annual fees. You can find plenty of choices with no annual fee or reasonable fees if you want superior cash back rewards.
Low bonus requirements. It’s usually easier to hit the required spending level for a sign-up bonus on a cash back cards than on travel credit cards.
Cons
Relatively low sign-up bonuses. Bonuses might range from none to about RM200, while some other cards can receive bonuses that exceed RM500 or provide gifts worth even more.
No outsized value. Points earned with rewards or travel cards can sometimes be converted into huge value, far exceeding the value of any cash back card.
Cash Back cards are not very suitable for carrying a monthly balance. Some cash back cards may have 0% intro APR period, but most do not. If you carry a balance, you’re likely to pay more in interest than you earn in cash back.
Fewer perks. You’re unlikely to find such travel related perks as free taxi ride to airport or airport lounge access.
